According to the U.S. Energy Information Administration, the average household in Texas uses about 15,000 kWh of electricity per year — 26 percent more than the national average, “but similar to the amount used in neighboring states.” That said, the only way to know your personal average energy consumption is by looking at your electricity bills over the course of a year (you want to accommodate all weather conditions) and understanding both your overall usage, as well as if you use more or less during certain months.
One desired effect of the competition is lower electricity rates. In the first few years after the deregulation in 2002, the residential rate for electricity increased seven times, with the price to beat at around 15 cents per kilowatt hour (as of July 26, 2006) in 2006. However, while prices to customers increased 43% from 2002 to 2004, the costs of inputs rose faster, by 63%, showing that not all increases have been borne by consumers.[7] (See Competition and entry of new firms above for discussion on the relationship between retail prices, inputs, and investment.)
In this free market competing electricity retailers buy electricity wholesale from private power generators to sell at retail to around 85% of Texas residents. The partnership between generators and retailers is governed by the Electric Reliability Council of Texas, or ERCOT, which attempts to balance the power grid’s electricity supply and demand by purchasing small amounts of electricity at 15-minute intervals throughout the day.
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